I had the opportunity this morning to indulge in some breakfast whilst listening to CCI’s Chief Economist – John Nicolaou – talk about the WA Economic Outlook as well as a recap of where we have been (i.e. a rollercoaster ride of sorts). There are all of the signs of not just a recovery here in WA, but the reestablishment of the growth pattern that we were dealing with before the GFC. Much of the focus of was on the labour force pressures (much like I posted on this morning) and how this was creating the two-tier economy that we see here in the state as well as adding to inflationary pressures.What was surprising to see in the press yesterday was Julia Gillard’s push for economic diversity across the country – however this is being talked about to validate the MRRT to effectively put the brakes on the growth in WA and QLD so that the ‘rusty states’ are not left behind. I like the idea of a diversified economy, however we should be using the unique opportunity we have here in WA to set out to realign and expand our economy, not have external taxes imposed to slow the growth here so help out the more dysfunctional states of the federation.
The one question I wanted to ask John this morning (but didn’t) was:
“How can we leverage off our strong Resources based economy here in WA to diversify it to give future stability and growth for the state?”
Maybe I’ll have to ask him at another time – but this is the key question that we have to be able to answer – or at least start getting our leaders to think about and start planning…